Tensions mount over AI Consequences on the Future
Silicon Valley's AI success is starting to create more economic suffering for the rest of us. Finance industry poised for mass automation.
Good Morning,
AI Supremacy is a Newsletter that explores the impact of AI on the future of business, technology, culture and society.
This is starting ot mean a lot for the lives of different kinds of people, consumers, investors, graduates, entrepreneurs, citizens and residents. The pressure of AI on real people and their communities is becoming more tangible this year.
A Pivotal AI Week Ahead
With Google’s I/O Conference starting tomorrow, Nvidia Earnings and the SpaceX IPO filing, this might be one of the most pivotal weeks in AI of 2026 (week of May 18th). Elon Musk is expected to start meeting with investors very soon ahead of an IPO for SpaceX, which was valued at $1.25 trillion after merging with xAI in February. I’m noticing a lot of subplots in the AI ecosystem in a rather bizarre geopolitical, inflation, bond story and Silicon Valley backdrop. Let’s dive into some of the most important among these.
Earnings Calendar this Week
Last week Anthropic announced Claude for Small Business, less than a year now from its IPO likely in December, 2026. You hear a lot of stories of SMBs struggling to implement Generative AI technology. This is especially true in an era of rising backlash against AI slop, datacenters and Billionaire incentives to praise the AI era as if it’s going to save us all.
At the time of writing today, Cursor released Composer 2.5, and I believe after Anthropic, Anysphere is one of the top B2B and Enterprise AI startups. From a product perspective I think this improves or at least enhances Cursor’s in-house model intelligence, long-running agentic behaviors, and the overall team development ecosystem within its IDE. Cursor is becoming known for its ability to multitask its strong parallel processing with async subagents.
The midpoint of 2026 marks an extremely cringe time in the history of AI, where entry level jobs are being impacted, and people are already extremely fed up. According to Axios, the “disdain spans generations” and political parties. An Economist/YouGov poll released this week showed over 70% of Americans think AI is advancing too quickly, with 68% of Republicans and 77% of Democrats saying it’s moving too fast.
The American Billionaire AI Rush 2026-
Capital, compute and the AI boom of elitism. What’s taking shape is not necessarily making many of us more hopeful about the future.
With three huge IPOs, SpaceX, Anthropic and OpenAI supposedly all coming in 2026 or early 2027, there’s a lot of capital at stake for a lot of rich people and Venture Capital funds, BigTech and the perception that America is ahead in AI.
A jury in Oakland, California, ruled against Elon Musk in his dramatic court battle with Sam Altman and OpenAI. Sam Altman is among a new breed of AI Venture Capitalists that are powerful angel investors while assuming CEO duties of one of the most powerful AI startups ever in OpenAI. I’ve been arguing that it is a company in decline. Whatever it is, it’s a child of a new era in Venture Capital history dominated by a few big funds.
Venture Capital Power is becoming more Concentrated
The Q2 2026 ranking of US unicorns shows a rather high concentration of VCs involved. They are roughly as follows:
A small handful of VCs are seeing the majority of the returns in the AI boom to the detriment of mid-sized VCs. Generative AI is narrowing the power and concentration base of Silicon Valley that was already previously highly concentrated.
